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- Posted: Mon, Aug 27 2012. 10:54 PM IST
Real Estate | Stay away from projects hit by controversy
However, if you know that the controversy is about to be settled, such as in the case of projects in Noida Extension area, and you are getting a really good deal, you may consider these
Devesh Chandra Srivastava
At least 100,000 homebuyers in around 30 projects in Noida Extension, stuck in a land controversy since May 2011, can now heave a sigh of relief. With the National Capital Region Planning Board (NCRPB) approving the draft Master Plan 2021 of Greater Noida Authority on 24 August, they can expect faster delivery of their units.
The NCRPB has sent its letter approving the master plan to Uttar Pradesh Housing Department’s principal secretary, who will forward it to the Greater Noida authority. The authority will then submit it before the Allahabad high court. As soon as the court approves the master plan, construction work, which stopped in October 2011, will resume on project sites. In October 2011, the court had ordered that work on Noida Extension projects couldn’t continue till the plan was approved by NCRPB.
While the uncertainty may soon be over for homebuyers in Noida Extension, buyers in some other projects that are now stuck in a logjam may not be so lucky. For example, even before the Suraj Kund area of Faridabad obtained environment clearance, a well-known developer started a high-end project, which eventually got stuck because of the issue. There are similar examples in Ghaziabad and Noida.
Then there are projects that are really delayed due to lack of infrastructure development in the area. For example, those in the Nehar Par:bab (45): area of Faridabad. Moreover, it was recently in the news because of a face-off between one of the well-known Delhi-based developer and its homebuyers in the area. The controversy was that the builder had altered the layout of the project and was demanding more money from the homebuyers.
Apart from mental harassment and looming uncertainty, buying into such projects can have some negative effects on your investment.
Price-wise, these projects may look attractive since they are low priced compared with other projects in the same area and some brokers even offer discounts on them to clear their inventory.
But once you are into it, you may really find yourself stuck with it. While most buyers would not like to lock their money in a controversial project, as a result of low demand and uncertainty around its construction, the price appreciation is also nothing to talk about.
For example, in the past one year, the Noida Extension area saw little appreciation as compared with projects in adjoining areas such as Greater Noida. Says Santosh Kumar, chief executive officer (operations), Jones Lang LaSalle India, a property consultant firm, “Before the controversy stirred, the average rate in Noida Extension was Rs. 1,800-2,000 sq. ft, which is now in the range of Rs. 2,800-3,200 per sq. ft.” This is much lower than the average price range in Noida—which is around Rs. 3,500-4,500 per sq. ft. Some of the recent launches are even touching above Rs. 10,000 per sq. ft.
Different price points
Projects stuck in a logjam are usually delayed and the longer a project gets delayed, the more number of price points it sees since prices keep appreciating from time to time. While a person wanting to get rid of such a project may offer a lower rate, another person may still want to exit at a profit.
For example, a number of projects in the Noida Extension area or Faridabad’s Nehar Par area have multiple prices for similar apartments. Take the example of Supertech Ltd’s project Eco Village in Noida Extension. The project got hit when the controversy surfaced. At that time, the units were priced in the range of Rs. 1,800-2,100 per sq. ft. After almost a year, it is now selling at Rs. 2,900 per sq. ft. Confirms Supertech Ltd’s managing director, R. K. Arora, “The units are now available at different price points. However, we have to factor in the pressure due to increased land compensation and inflation.”
Delivery issues and more interest outgo
There is always a possibility of long delays in projects that are in a controversy. Usually, cases go to the court and the judiciary quintessentially takes its own time on cases.
If you have taken a home loan for the apartment, delays would mean you end up paying a higher interest amount compared with a project that gets completed on time. This is an additional cost that you have to bear over and above your regular equated monthly instalment (EMI) that will begin once the full loan is disbursed. “The interest payment continues if the project is stuck at a particular stage,” says Anil Sharma, chairman and managing director, Amrapali Group.
If you are on a construction-linked plan for the repayment of your loan, in case of a delay, the pre-EMI gets fixed at the last number and the cycle restarts only when the construction restarts. Since banks disburse the loan based on the completion certificate, you will continue to pay the pre-EMI interest based on the previous disbursed amount till the time the developer resumes construction. The longer the delay, the later would the disbursement cycle start and in the interim, you would continue to pay additional interest on the amount already disbursed.
What’s worse, despite the high cost, there is uncertainty.
What should you do?
We wouldn’t advise you to take risk and invest in a project, which is stuck in a controversy. However, if you come to know that the controversy on its settlement course, such as in the case of projects in Noida Extension area, and you are getting a really good deal, you may consider it. However, even here we advise caution.
But remember that even if a project comes out of controversy, the existing buyers would have to make some adjustments. For example, most developers in the Noida Extension area will go for the maximum floor area ratio (FAR) available for construction. FAR denotes on how much area a developer is allowed to construct on a given plot size. The draft of the master plan of the Greater Noida Authority has proposed to add 0.75 to the existing FAR of 2.75. This can be bought if required.
Says Santosh Rastogi, director, Savouir Builders, a Noida-based developer having projects in the Noida Extension area in collaboration with Gaursons India Ltd, “Most developers will buy this additional FAR. This would mean that they will be able to increase the height of the new upcoming towers.” For exiting homebuyers, this would mean that developers will increase the number of floors. So if you have booked an apartment on the top floor, be ready to have some more floors on your top. This would also mean an increased population density on the same resources. This reformatting may also increase the super area and thereby your cost in some cases.
For new buyers, the rates will increase with the controversy getting sorted out. Says Sharma, “The price rise will also be a consequence of the increase in the input cost due to rise in the raw material cost.”
:D(Red paragraph for the Guy who keeps visiting this thread from Neharpar) :DCommentQuote0Flag
- All the existing NExtn buyers just chill.
There are many guys who like to run down NExtn due to professional reasons (brokers and investors of other areas) and personal (fence sitters and buyers in other regions). As things improve in NExtn so will nonsense.
Regarding SC cases, at best SC will upheld HC judgement (3-judge full bench HC judgement cannot be simply overturned without great reasoning) or at worst SC will direct re-acquisition of land for the farmers who have not taken compensation (land in which no fencing done at the circumference of the plot).
Do not mix issues that are present in every new area and every under-construction flat with the issues of NExtn. Metro is proposed and may remain proposed forever, but as in all new areas of NCR, at least roads are not proposed. For Nodia centric buyer the location is unmatched. By Indian standards the infrastructure even before a single flat is delivered is unmatched. Furthermore NCR-PB restrictions mandates a great planning and open area (unthinkable outside GNoida in NCR).
Whether NExtn lives up to its hype is different issue, but NExtn has arrived again, that too with a bang and that's the fact.
:D :D :DCommentQuote2Flag
- Originally Posted by iamonpcmy woods
same to same :DCommentQuote0Flag
- Originally Posted by cookiesame to same :D
- I am with Noida Extention, Since it has been started getting the shape like a new child inside his motherwomb....Oct'2009, visited multiple times....it was like a desert, unconstructed roads and couple of tents......dusts in the air all around....Big banners & hoarding visible from far away...CommentQuote0Flag
- Originally Posted by cookieBut remember that even if a project comes out of controversy, the existing buyers would have to make some adjustments. For example, most developers in the Noida Extension area will go for the maximum floor area ratio (FAR) available for construction. FAR denotes on how much area a developer is allowed to construct on a given plot size. The draft of the master plan of the Greater Noida Authority has proposed to add 0.75 to the existing FAR of 2.75. This can be bought if required.This is bad for NExtn, FAR of 2.75 is dense enough, FAR for 3.5 can be a killer (e.g. FAR of CR is 4.0).
- Is crossing 4.0?Originally Posted by FieldWorkerThis is bad for NExtn, FAR of 2.75 is dense enough, FAR for 3.5 can be a killer (e.g. FAR of CR is 4.0).
- Developers asked to start work on units ‘immediately’
GREATER NOIDA: The Greater Noida Industrial Development Authority (GNIDA) has decided to not lose any more time and ordered developers to resume construction work in Noida Extension immediately. This direction comes as all pre-conditions to resume construction work in the area have been finally met.
In a meeting on Monday with 25 major developers, Greater Noida Authority CEORama Raman directed them to resume all stalled construction work with "immediate effect." Raman also asked them to start paying their due instalments for the period between October 21, 2011 and August 2012 so that the Authority can resume halted development work.
The developers owe the Authority a total of about Rs 20,000 crore as instalment for the land allotted to them in Noida Extension almost three years ago. However, as per the initial agreement, the entire amount is to be paid to the Authority in instalments spread over eight years.
GNIDA has already collected nearly Rs 300 crore from the developers. However, following the Allahabad high court order on October 21, 2011, directing developers and GNIDA to stop work in Noida Extension, most developers stopped paying the due instalments. Developers owe the Authority around Rs 1,000 crore for the period between October 21, 2011 and now.
However, the Authority has not given any deadline to the developers to pay up and has also assured them that no interest will be charged from them on the due instalments. This respite of the 'zero period' will also be applicable to buyers regarding their instalments due to the developers.
In a meeting with homebuyers in the evening, Raman assured them that developers will not hike the rates for existing investors. The Authority has also decided to call a meeting with leading banks to assure them of the marketability of Noida Extension projects.
Developers asked to start work on units ‘immediately’ - The Times of IndiaCommentQuote0Flag
- good newsCommentQuote0Flag
- हाईकोर्ट को पहुंचाई मास्टर प्लान पास होने की जानकारी
तत्काल 10 हजार करोड़ की जरूरत
• अमर उजाला ब्यूरो
ग्रेटर नोएडा। एनसीआर प्लानिंग बोर्ड से ग्रेनो का मास्टर प्लान 2021 पास होने की सूचना सोमवार को इलाहाबाद हाईकोर्ट भेज दी गई। अधिकारी पूरे दिन विकास को गति देने के लिए बैठकों में व्यस्त रहे। बिल्डरों के साथ विमर्श कर काम चालू करने को भी कहा गया। प्राधिकरण को तत्काल 10 हजार करोड़ रुपये की जरूरत है। इसके इंतजाम पर भी चर्चा हुई। इस दौरान आवंटियों से जोर-जबरस्ती नहीं करने की भी बात कही गई।
मास्टर प्लान से प्रभावित 30 हजार आवंटियों से फिलहाल करीब एक हजार करोड़ रुपये मिलने की संभावना है। नोएडा एक्सटेंशन के बिल्डरों से प्राधिकरण को आठ साल में 20 हजार करोड़ रुपये मिलने हैं। प्राधिकरण ने पेमेंट प्लान बदलने का इरादा टाल दिया है।
ग्रेनो प्राधिकरण अब किसी भी विवाद में उलझना नहीं चाहता। फ्लैटों की स्कीम लांच हो चुकी है। सेक्टरों के खाली पड़े आवासीय और कामर्शियल प्लाटों/दुकानों की भी सूची तैयार की जा रही है। प्राधिकरण के पास उद्योगों के लिए भी जमीन है। इसके आवंटन की प्रक्रिया भी शीघ्र शुरू होने वाली है। प्राधिकरण का इरादा अपने ही संसाधनों से 5500 करोड़ के कर्ज का बोझ उतारना है।
असली परीक्षा अब
करीब दो साल से प्राधिकरण में सब कुछ ठप था। अब शहर को फिर से उठाने की बारी आई है। प्राधिकरण बिल्डरों को नाराज नहीं करना चाहता, पर साथ ही किसानों को मनाना पहली प्राथमिकता है। कहां सबसे पहले विकास कार्य शुरू होंगे, यह भी तय करना है। व्यक्तिगत आवंटियों को भी साथ लेकर चलना है।
प्राधिकरण से सभी पक्षों ने कह दिया है कि संकट काल में उनको भी भारी-भरकम नुकसान हुआ है। प्राधिकरण ने ही जमीन दी है। आवंटियों का कोई कुसूर नहीं है। कोई भी पक्ष रूठ गया तो अन्य पक्ष भी प्रभावित होंगे। इसीलिए प्राधिकरण सभी को साथ लेकर चलने की बात कह रहा है।
हजार करोड़ मिलेंगे बिल्डरों से आठ साल बाद
किसानों ने मांगा अपना हक
बुक फ्लैटों की कीमत न बढ़ाएं
बिल्डरों से कहा है कि जिन लोगों ने पहले फ्लैट बुक कराए हैं, उनका पैसा न बढ़ाया जाए। कम समय में काम पूरा कराया जाए। जरूरत पड़े तो मजदूर ज्यादा लगाए जाएं। 21 अक्तूबर 2011 से 24 अगस्त 2012 तक किसी भी आवंटी से पेनाल्टी नहीं ली जाएगी। यह समय जीरो पीरियड रखा जाएगा। शाहबेरी में जुलाई और पतवाड़ी में मई से जीरो पीरियड रहेगा।
-रमा रमन, सीईओ, ग्रेनो प्राधिकरण
•ग्रेनो प्राधिकरण के अफसरों ने की हालात पर चर्चा
•उद्योग/प्लाॅट/कमर्शियल स्कीम से होगा इंतजाम
नोएडा एक्सटेंशन के सबसे बड़े गांव बिसरख में चौगानपुर, पतवाड़ी, ऐमनाबाद, रोजा, छोटी मिलक समेत दर्जनभर गांवों के किसानों की बैठक हुई। इसमें किसान नेता आमोद भाटी ने कहा कि जब एक्टेंशन में संकट था तो सांसद सुरेंद्र सिंह नागर की अगुवाई में प्राधिकरण और किसानों के समझौते कराए गए थे। वही समझौता इलाहाबाद हाईकोर्ट में नजीर बना और शहर उजड़ने से बच गया। प्राधिकरण ने 64 फीसदी अतिरिक्त मुआवजा, 10 फीसदी जमीन और गांवों का विकास करने का लिखित समझौता किया था। उसे पहले पूरा करना होगा, अन्यथा वे बिल्डरों का काम नहीं होने देंगे। इस दौरान युवा नेता दीपक भाटी चोटीवाला, टीकम यादव, पप्पू यादव, प्रमोद यादव, टिंकू नागर, देवेंद्र सिंह, ब्रह्म सिंह, श्याम, राजेंद्र, रतन सिंह, संतू, लोेकेंद्र भाटी, उदयवीर, विकास और रोहताश आदि शामिल रहे।CommentQuote0Flag